On Friday, July 10, 2026, Law360 reported that a New York federal judge granted preliminary approval to a $2.3 million settlement between Hut 8 Corp. and investors.
The settlement aims to resolve claims that the bitcoin miner overpaid for a company that had significant operational problems. Investors also alleged that Hut 8 misled them regarding energy and connectivity issues at a Texas facility acquired during the merger.
U.S. District Judge Victor Marrero deemed the settlement fair, reasonable, and adequate in his order. The judge also certified a settlement class comprising all individuals and entities who purchased or acquired Hut 8 securities in the United States or on a U.S.-based exchange between February 13, 2023, and January 18, 2024.
The lawsuit stemmed from a report by short-seller J Capital Research, which alleged that Hut 8 had overstated the profitability of its acquisition of U.S. Bitcoin Corp. (USBTC). Following the report, Hut 8’s shares reportedly dropped by 23%.
The suit further detailed allegations of energy and connectivity failures at the King Mountain facility in Texas, which was part of the merger. Additionally, the lawsuit suggested that USBTC’s CEO might have concealed ownership shares through a partner.
Lead counsel from Pomerantz LLP intends to seek attorney fees not exceeding one-third of the settlement fund, approximately $759,000.
Source: Law360
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